At&T Case Analysis Essay

Words: 3128
Pages: 13


AT&T was started over 130 years ago in 1875. It started out when Alexander Graham Bell began work on the telephone. Initially it just made telephones and licensed to companies to
• Many changes in the company structure
• 6,000 patents
• 7 Nobel prizes


I. General Environment
A. Technology –Alexander Graham Bell invented the telephone and earned the patent in 1875. AT & T was incorporated in 1885 with objective of building and operating long distance network. AT & T was the telecommunication leader until the late 90s. Here is the list of AT & T technological movement: 1925 virtually monopoly on local telephone service, 1926 begins telephone service via two-way radio, 1947 transistor invented at Bell
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The failure led AT&T to announce a split plan in October 2000 for more efficiency operation.

II. Industry Environment
A. Industry definition-Telecommunication industry is a large and high-tech industry. It includes local, long distance and wireless network service, broadband for computer and cable for television. This industry is complex and diversified; rapid technology development and upgrades are crucial to survival in this industry.
B. Dominant economic characteristics
1. Market size: As technology advances, the need for telecommunication is growing year by year. The need to use telephone, computer or cable for every household is increasing. Telecommunication industry market size is enormous; the market size includes the whole nation population.
2. Stage of life cycle: The stage of life cycle for telecommunication industry is reaching maturity. However, the industry has potential to grow due to constant technological advancements.
3. Growth rate: the case did not provide growth rate information.
4. Scope of rivalry: Judging from the number of domestic firms, the rivalry is intense within the nation. In every leg of the business, AT&T has a competitor.
5. Rival concentration: The industry segment consists of network for local and long distance, Internet and cable. Rival concentration is mainly on access and control to the local network, without such